The Richmond Corporation Uses the Weighted-Average Method in Its Process

question 345

Multiple Choice

The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory on August 31 consisted of 18,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the cost per equivalent unit for August was $2.75 for materials and $4.25 for labor and overhead, the total cost assigned to the ending work in process inventory was:

• A) $126,000
• B) $75,600
• C) $80,100
• D) $95,400

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Definitions:

Productive Efficiency

A situation where the economy or a production system can no longer produce additional amounts of a good without lowering the production level of another product.

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An extended period of significant decline in economic activity across the economy, lasting more than a few months, characterized by high unemployment, low consumer spending, and decreased industrial production.

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Unemployment Rate

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